Soft Magnetic Material Trends and Forecast
The future of the global soft magnetic material market looks promising with opportunities in the motor, transformer, and alternator markets. The global soft magnetic material market is expected to reach an estimated $25.4 billion by 2031 with a CAGR of 3.3% from 2025 to 2031. The major drivers for this market are increasing expenditures in the energy distribution industry, rise in the automotive industry’s need for soft magnetic materials, and growing investments in the production of medical equipment, power transmission, and electric vehicle manufacturing.
• Lucintel forecasts that, within the material category, electric steel is expected to witness the highest growth over the forecast period because the electrical steel has several uses in engines, generators, transformers, and alternators, as well as, it has outstanding qualities such as high electrical resistance to iron, high permeability, and low coerciveness.
• In terms of regions, APAC is expected to witness highest growth over the forecast period due to expanding number of automakers and increased funding for the development of cutting-edge electronics and telecommunications sectors in the region.
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Emerging Trends in the Soft Magnetic Material Market
The soft magnetic material market has been undergoing a transformation, driven by several emerging trends. These trends may be technologically advanced, related to market demand growth, or oriented toward industrial applications. Understanding these trends explains how the market adapts and grows. The following are five major trends influencing the market:
• Advancement in High-Performance Materials: This puts greater demands on the development of high-performance soft magnetic materials with higher permeability and lower core loss. Newer developments focus on advanced amorphous and nanocrystalline alloys for electric vehicle applications and renewable energy systems. These materials have become imperative in the industry for power conversion and energy storage applications.
• Electric Vehicle Application Growth: The increasing demand for electric vehicles has driven the need for higher volumes of soft magnetic materials, particularly for motors and power electronics. High saturation flux density with low-loss characteristics is crucial to the efficiency and performance of electric vehicles. As such, this trend has translated into heavy investment in R&D to create materials that meet the stringent requirements of electric vehicle technologies.
• Renewable Energy Sector Expansion: The renewable energy sector has opened new opportunities for soft magnetic materials. Energy sources like wind and solar power have variable natures that require high-efficiency transformers and inductors. Materials that can operate at high frequencies and high temperatures are being developed to enhance the reliability and performance of energy conversion systems.
• Increasing Focus on Sustainability: The soft magnetic materials industry is increasingly focusing on sustainability. Companies are investing in recycling technologies and eco-friendly production methods to lessen the environmental impact of the product life cycle. This trend aligns with the global push to reduce carbon footprints and support sustainable manufacturing processes. Recycling and waste management have become vital parts of the industry’s development.
These emerging trends are restructuring the soft magnetic material market, driving innovation, improving performance, and responding to sustainability challenges. The changes embraced by the industry are integral to meeting the demands of modern technology and maintaining a competitive advantage in this rapidly shifting market.
Recent Developments in the Soft Magnetic Material Market
The soft magnetic material market is evolving due to significant progress brought about by technological advances and changing industry needs. Key events across regions reflect broader trends and offer insight into the future direction of the market. The following are five key developments shaping the market dynamics:
• Improving Magnetic Properties: New developments focus on improving the magnetic properties of soft magnetic materials, including increased permeability and better loss characteristics. The development of high-performance amorphous and nanocrystalline materials, which possess exceptional efficiency in transformers and inductors, is a significant advancement.
• Electric Vehicle Component Expansion: The increased demand for electric vehicles accelerates the development of soft magnetic material applications used in electric vehicle components. Research is focused on materials with high saturation flux density and low core loss to improve the performance of electric motors and power electronics. This development is crucial for advancing electric vehicle technologies and enhancing efficiency and reliability.
• Renewable Energy Systems: Soft magnetic materials are receiving significant development focus for renewable energy applications, such as high-efficiency transformers and inductors. Ongoing innovative efforts aim to improve the performance of energy conversion systems for wind and solar installations, making power output from these sources easier to handle more efficiently and reliably.
• Sustainability and Recycling Initiatives: Companies are increasingly focusing on sustainable production and recycling processes for soft magnetic materials. These efforts involve using eco-friendly production methods and developing technologies to recycle magnetic materials. This aligns with global sustainability goals to reduce the environmental impact of manufacturing activities and adds value to the circular economy in industries.
These developments highlight key areas of innovation in the soft magnetic material market. Advancements in material properties, electric vehicle components, renewable energy systems, sustainability, and miniaturization will drive growth and evolution in the market. The soft magnetic material market is evolving due to significant progress brought about by technological advances and changing industry needs. Key events across regions reflect broader trends and offer insight into the future direction of the market. The following are five key developments shaping the market dynamics:
• Improving Magnetic Properties: New developments focus on improving the magnetic properties of soft magnetic materials, including increased permeability and better loss characteristics. The development of high-performance amorphous and nanocrystalline materials, which possess exceptional efficiency in transformers and inductors, is a significant advancement.
• Electric Vehicle Component Expansion: The increased demand for electric vehicles accelerates the development of soft magnetic material applications used in electric vehicle components. Research is focused on materials with high saturation flux density and low core loss to improve the performance of electric motors and power electronics. This development is crucial for advancing electric vehicle technologies and enhancing efficiency and reliability.
• Renewable Energy Systems: Soft magnetic materials are receiving significant development focus for renewable energy applications, such as high-efficiency transformers and inductors. Ongoing innovative efforts aim to improve the performance of energy conversion systems for wind and solar installations, making power output from these sources easier to handle more efficiently and reliably.
• Sustainability and Recycling Initiatives: Companies are increasingly focusing on sustainable production and recycling processes for soft magnetic materials. These efforts involve using eco-friendly production methods and developing technologies to recycle magnetic materials. This aligns with global sustainability goals to reduce the environmental impact of manufacturing activities and adds value to the circular economy in industries.
These developments highlight key areas of innovation in the soft magnetic material market. Advancements in material properties, electric vehicle components, renewable energy systems, sustainability, and miniaturization will drive growth and evolution in the market.
Strategic Growth Opportunities in the Soft Magnetic Material Market
The market for soft magnetic materials presents numerous strategic growth opportunities across various applications. Identifying and capitalizing on these opportunities could drive market growth and innovation. Below are five growth opportunities based on application areas:
• Electric Vehicles: The phenomenal growth of the electric vehicle market is a significant opportunity for soft magnetic materials in EV components. High-performance materials are required for efficient performance in electric motors and power electronics. The growing adoption of electric vehicles creates demand for advanced magnetic materials that improve performance and efficiency, making this a lucrative market opportunity.
• Renewable Energy Systems: The development of wind and solar power presents opportunities for soft magnetic materials in energy conversion and management systems. These energy sources are variable, requiring high-efficiency transformers and inductors. This opportunity drives the development of materials to enhance energy system reliability and performance, supporting the growth of the renewable energy sector.
• Consumer Electronics: The increasing demand for miniaturized and high-performance consumer electronics creates opportunities for soft magnetic materials. For instance, magnetic properties in personal wearables and other electronic devices are driving material advancements. The integration of these materials into new product designs offers significant innovation opportunities in the consumer electronics market.
• Telecommunications: The demand for superior soft magnetic materials in high-frequency and high-performance telecommunications components continues to rise. Enhanced magnetic properties are crucial for improving communication devices and infrastructure. This growth area involves developing materials to support the increasing need for faster and more reliable telecommunications technologies.
The development of strategic growth opportunities in the soft magnetic material market is driven by advances in electric vehicles, renewable energy systems, consumer electronics, industrial automation, and telecommunications. Capturing these opportunities allows companies to increase their market presence and innovate to meet the fast-evolving demands of these industries.
Soft Magnetic Material Market Driver and Challenges
Several factors are driving and challenging the growth and development of the soft magnetic material market. These factors range from technological changes to economic and regulatory influences. Understanding these drivers and challenges is key to gaining insight into market dynamics and future outlook. Below is an analysis of the major drivers and challenges affecting the market:
The factors responsible for driving the soft magnetic material market include:
• Technological Advances: Technological development in material science is a key driving force behind the development of high-performance soft magnetic materials. Improvements in magnetic permeability and reduced core loss characteristics are enhancing efficiency and performance in applications like electric vehicles and renewable energy systems. These advancements encourage market growth by expanding application areas and improving material properties.
• Growing Electric Vehicle Market: The rapid growth of the electric vehicle market is one of the largest drivers of the soft magnetic material industry. The components required for electric vehicles, such as motors and power electronics, need materials with high performance. Increased adoption of electric vehicles is driving demand for advanced magnetic materials, investments in R&D, and continuous market expansion.
• Growth in Renewable Energy Sector: The application of soft magnetic materials in renewable energy conversion and management systems creates demand from growing industries. High-efficiency transformers and inductors are increasingly needed, opening up new opportunities for material development and application in renewable technologies.
Challenges in the soft magnetic material market are:
• Production Costs: Advanced soft magnetic materials are expensive to produce, which may hinder market growth. Development and manufacturing processes involving high-performance materials require significant investment in research, technology, and infrastructure. Reducing production costs without compromising material quality is a major challenge for companies in the market.
• Regulatory Compliance: Companies may struggle to meet regulatory requirements and environmental regulations related to soft magnetic materials. They must adhere to complex regulations addressing material safety, environmental concerns, and production processes. Companies need to carefully manage these regulatory changes to remain compliant and competitive.
The factors and challenges influencing the soft magnetic materials market highlight its dynamic nature. Advances in technology, growing demand for electric vehicles, expanding renewable energy sectors, sustainability, and miniaturization positively impact this segment. Overcoming challenges such as raw material supply chains, production costs, and regulatory compliance will ensure the continued development and stabilization of the market.
List of Soft Magnetic Material Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies soft magnetic material companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the soft magnetic material companies profiled in this report include-
• Arnold Magnetic Technologies
• GKN Sinter Metals Engineering
• Hitachi Metals Group
• JFE Steel Group
• Mahindra CIE
• MATE
• Meyer Sintermetall
• Sintered Specialties
• Steward Advanced Materials
• VACUUMSCHMELZE
Soft Magnetic Material by Segment
The study includes a forecast for the global soft magnetic material by material, application, end use industry, and region.
Soft Magnetic Material Market by Material [Analysis by Value from 2019 to 2031]:
• Cobalt
• Iron
• Nickel
• Electric Steel
• Others
Soft Magnetic Material Market by Application [Analysis by Value from 2019 to 2031]:
• Motors
• Transformers
• Alternators
• Others
Soft Magnetic Material Market by End Use Industry [Analysis by Value from 2019 to 2031]:
• Automotive
• Electrical & Electronics
• Telecommunication
• Energy & Power
• Others
Soft Magnetic Material Market by Region [Analysis by Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Soft Magnetic Material Market
The soft magnetic materials market has undergone significant transformation in recent years, driven by continuous technological advancement and changing industrial needs. This trend is reflected differently in major markets: the United States, China, Germany, India, and Japan, which show wider structural changes in the global economy, guided by technological innovation, shifting industrial needs, and conducive regulatory environments.
• United States: The U.S. soft magnetic material market is increasing R&D investments, focusing on high-performance materials for the electronics and automotive sectors. Advances aim to enhance magnetic permeability and reduce losses, driven by the growth in electric vehicles and renewable energy. There is also a push for domestic production to strengthen supply chains.
• China: China’s market is expanding rapidly due to heavy investments and advancements in special materials like amorphous and nanocrystalline alloys, essential for high-efficiency transformers and inductors. Government policies promoting technological innovation and energy efficiency support this growth, especially in electric vehicles and renewable energy.
• Germany: Germany is advancing in producing soft magnetic materials with enhanced properties and energy efficiency, driven by its strong automotive sector and focus on sustainability. The country emphasizes recycling and reducing environmental impact, reflecting its commitment to electric mobility and advanced manufacturing.
• India: India is emerging as a significant market due to rapid industrialization and rising demand for electrical and electronic appliances. Government initiatives, such as the "Make in India" campaign, support local production of high-quality materials, while renewable energy projects create additional demand for soft magnetic materials in transformers.
• Japan: Japan remains competitive in advanced soft magnetic materials, focusing on ferrites and high-frequency performance. The country’s emphasis on technological innovation and precision manufacturing supports applications in electronics, automotive, and industrial sectors.
Features of the Global Soft Magnetic Material Market
Market Size Estimates: Soft magnetic material market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Soft magnetic material market size by material, application, end use industry, and region in terms of value ($B).
Regional Analysis: Soft magnetic material market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different material, application, end use industry, and regions for the soft magnetic material market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the soft magnetic material market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the soft magnetic material market size?
Answer: The global soft magnetic material market is expected to reach an estimated $25.4 billion by 2031.
Q2. What is the growth forecast for soft magnetic material market?
Answer: The global soft magnetic material market is expected to grow with a CAGR of 3.3% from 2025 to 2031.
Q3. What are the major drivers influencing the growth of the soft magnetic material market?
Answer: The major drivers for this market are increasing expenditures in the energy distribution industry, rise in the automotive industry’s need for soft magnetic materials and growing investments in the production of medical equipment, power transmission, and electric vehicle manufacturing.
Q4. What are the major segments for soft magnetic material market?
Answer: The future of the soft magnetic material market looks promising with opportunities in the motor, transformer, and alternator markets.
Q5. Who are the key soft magnetic material market companies?
Answer: Some of the key soft magnetic material companies are as follows:
• Arnold Magnetic Technologies
• GKN Sinter Metals Engineering
• Hitachi Metals Group
• JFE Steel Group
• Mahindra CIE
• MATE
• Meyer Sintermetall
• Sintered Specialties
• Steward Advanced Materials
• VACUUMSCHMELZE
Q6. Which soft magnetic material market segment will be the largest in future?
Answer: Lucintel forecasts that electric steel is expected to witness the highest growth over the forecast period because the electrical steel has several uses in engines, generators, transformers, and alternators, as well as, it has outstanding qualities such as high electrical resistance to iron, high permeability, and low coerciveness.
Q7. In soft magnetic material market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness highest growth over the forecast period due to expanding number of automakers and increased funding for the development of cutting-edge electronics and telecommunications sectors in the region.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the soft magnetic material market by material (cobalt, iron, nickel, electric steel, and others), application (motors, transformers, alternators, and others), end use industry (automotive, electrical & electronics, telecommunication, energy & power, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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